Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) is reporting a $105.8 million fiscal fourth quarter loss, compared to net income of $33.2 million during the same quarter the previous year. The company also says radio net revenues increased 20 percent.

May 7, 2015

News Release

Indianapolis, Ind. — Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full-year ending February 28, 2015.

Emmis' radio net revenues for the fourth fiscal quarter were $38.8 million, up from $32.3 million from the prior year, an increase of 20%. On a pro forma basis, Emmis' revenues reported to Miller Kaplan in the markets where Emmis competes (excluding barter and syndication revenue) were up 0.8% in markets down 2.5%.

For the full year, radio revenues were $176.3 million, compared to $145.3 million in the prior year, an increase of 21%. On a pro forma basis, Emmis' revenues reported to Miller Kaplan in the markets where Emmis competes (excluding barter and syndication revenue) were up 1.6% in markets down 3.7%.

February marked the 15th consecutive month in which Emmis outperformed the markets in which it competes. Every measured Emmis market outperformed for full year fiscal 2015. Emmis stations in New York, Los Angeles and Austin all outperformed their markets in the fourth fiscal quarter.

“Despite weakened markets and a challenged industry, Emmis once again outperformed. The radio industry needs a catalyst for growth, and we are convinced we have it with NextRadio, the Emmis-developed free smartphone app that marries over-the-air local FM broadcasts with visual and interactive features,” Jeff Smulyan, President & CEO of Emmis said.

The radio industry's consumer awareness campaign for NextRadio has had remarkable results, further validating the promotional power of radio.

“Consumers exposed to NextRadio overwhelmingly love it,” Smulyan said. “Average Time Spent Listing (ATSL) per session on NextRadio is nearly double traditional listening, all major radio companies are supporting the effort, and we are adding 350,000 activations each month. The momentum is tremendous.”

Station operating income (SOI) during the quarter was $6.7 million, compared to $6.9 million for the same quarter of the prior year. For the full year, SOI was $53.4 million, compared to $48.3 million in the prior year.

During the fourth fiscal quarter, Emmis recorded noncash impairment losses totaling $74.6 million ($6.7 million of which is reflected in other (expense), income, net) and recorded a full valuation allowance against its deferred tax assets. These noncash impairment charges and the valuation allowance have no impact on Emmis' cash flows, debt compliance, or ongoing operations.

A conference call regarding earnings will be hosted today at 9 a.m. Eastern by dialing 1-517-623-4891. Questions may be submitted via email to ir@emmis.com. A digital playback of the call will be available until 6 p.m. on Thursday, May 21 by dialing 203-369-0390.

Emmis has included supplemental pro forma net revenues, station operating expenses, and certain other financial data on its website, www.emmis.com under the “Investors” tab.

Emmis generally evaluates the performance of its operating entities based on station operating income.

Management believes that station operating income is useful to investors because it provides a meaningful comparison of operating performance between companies in the industry and serves as an indicator of the market value of a group of stations or publishing entities. Station operating income is generally recognized by the broadcast and publishing industries as a measure of performance and is used by analysts who report on the performance of broadcasting and publishing groups. Station operating income does not take into account Emmis' debt service requirements and other commitments, and, accordingly, station operating income is not necessarily indicative of amounts that may be available for dividends, reinvestment in Emmis' business or other discretionary uses.

Station operating income is not a measure of liquidity or of performance, in accordance with accounting principles generally accepted in the United States, and should be viewed as a supplement to, and not a substitute for, our results of operations presented on the basis of accounting principles generally accepted in the United States. Operating Income is the most directly comparable financial measure in accordance with accounting principles generally accepted in the United States.

Moreover, station operating income is not a standardized measure and may be calculated in a number of ways. Emmis defines station operating income as revenues net of agency commissions and station operating expenses, excluding depreciation, amortization and non-cash compensation. A reconciliation of station operating income to operating income is attached to this press release.

The information in this news release is being widely disseminated in accordance with the Securities & Exchange Commission's Regulation FD.

About Emmis Communications

Emmis Communications Corporation is a diversified media company, principally focused on radio broadcasting. Emmis operates the 9th largest radio portfolio in the United States based on total listeners. Emmis owns 19 FM and 4 AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has a 50.1% controlling interest in Emmis' radio stations located there), Indianapolis and Terre Haute, IN.

Source: Emmis Communications Corp.

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